Singapore Airlines (SIA) has denied a media report that it is planning to raise its stake in Air India. The report, which was published by the Indian newspaper Mint, claimed that SIA was in talks with the Tata Group, which owns Air India, about increasing its stake from 25.1% to 40%.
In a statement, SIA said that the report was “incorrect” and that it “has no plans to increase its stake in Air India at this time.” The company said that it is “committed to its long-term partnership with Air India” and that it is “working closely with the Tata Group to strengthen the airline.”
The report of a potential stake increase in Air India comes at a time when the airline is facing financial challenges. Air India has been loss-making for several years and has been struggling to compete with low-cost carriers. The Tata Group, which acquired Air India in January 2022, is looking to turn around the airline’s fortunes.
SIA’s denial of the report is a setback for the Tata Group, which had hoped to raise additional capital from SIA to help turn around Air India. However, the report also suggests that the Tata Group is confident in its ability to turn around Air India without SIA’s help.
The Tata Group has a long history of operating airlines. In addition to Air India, the group also owns AirAsia India and Vistara. The group is also planning to launch a new low-cost carrier, Akasa Air, in the coming months.
The Tata Group’s plans to turn around Air India are ambitious, but the group has a strong track record in the aviation industry. It is possible that the group will be able to turn around Air India and make it a profitable airline once again.